Jaanus Aal: Estonian economy needs policy stability for growth, not more reforms

Manufacturing executive Jaanus Aal believes that reviving the Estonian economy does not require new reforms or tax changes. Instead, he calls for politicians to provide stability and cross-party agreements that do not shift with every election cycle.

Estonian manufacturing executives are watching the country's economic situation with growing concern. Jaanus Aal, whose experience leading in the industrial sector gives him a clear view of economic realities, believes that the current tendency among politicians to constantly introduce new reforms is more of an obstacle than a help.

Aal emphasises that businesses do not expect the state to deliver revolutionary change or new tax breaks — they want predictability. Each new government brings its own tax changes, regulations and priorities, making long-term planning difficult and investments risky. Such an environment hampers economic growth more than any particular tax burden.

From the industrial sector's perspective, it is particularly important that political parties reach agreements on key national issues that would endure across election cycles. This applies to energy policy, transport infrastructure, as well as labour and education policy. The current situation, where the course is reset every four years, does not suit either investors or manufacturing companies.

According to Aal, this does not mean Estonia should never change. The question is rather how changes are implemented — whether hastily and under political pressure, or thoughtfully and in consultation with stakeholders. The economy needs peace to grow, not constant reform.